Marks & Spencer cuts warehouse contractors
LONDON, March 27 (Reuters) – Britain’s Marks & Spencer Plc said on Thursday it had cut the number of contractors managing its warehouses to two from four following a review of logistics for its fashion and non-food products.
The firm said it had awarded a contract to Exel Plc to operate seven UK warehouses, while Christian Salvesen Plc would continue to manage its current three UK warehouses.
Marks & Spencer said GIST and Tibbett & Britten Group Plc would no longer run general merchandise warehouses for it, but GIST would continue to operate most of Marks & Spencer’s food supply chain and Tibbett & Britten remained a partner in its general merchandise transport network.
The retailer said the decision, together with the proposed closure of its Hayes warehouse near London, would mean an exceptional cost of about 35 million pounds ($55 million) in the current financial year, but would generate savings of 20 million pounds a year and meet its aim to cut operating costs.
